18/12/2008 - 13:40

Phosphate Australia best performing IPO

18/12/2008 - 13:40

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Perth-based Phosphate Australia has emerged as the best performing initial public offer for 2008, as the number of company listings in Western Australia more than halve as the financial crisis bites.

Perth-based Phosphate Australia has emerged as the best performing initial public offer for 2008, as the number of company listings in Western Australia more than halve as the financial crisis bites.

In its IPO review for 2008, Deloitte said Phosphate Australia was trading at 70 per cent above its 20 cent issue price before the survey cut-off date.

In comparison, the average share price performance for all IPOs during the year is 61 per cent below the issue price while 4 per cent of companies that listed are trading above their issue price.

Phosphate Australia, which has been endorsed by fertiliser tycoon Pankaj Osawal who has taken a 6 per cent interest, raised $10 million in its IPO and debuted at a near 300 per cent premium to its issue price.

Meantime, Perth-based investment company Ozgrowth has made the top 10 biggest IPOs, coming in at number four after raising $80 million. The stock was beaten by BrisConnection ($408.7 million), Ivanhoe Australia ($125 million) and Compass Hotel Group ($123 million).

The 10 biggest IPOs accounted for a higher percentage of all funds raised at 69 per cent, compared with the previous year's 59 per cent.

However the IPOs averaged a loss of 72 per cent.

The best performing IPO of the top 10 was Subiaco-based White Canyon Uranium, which ended the year at a discount of 42 per cent to its issue price.

In WA, 44 companies floated on the Australian stock exchange, raising a total of $323.3 million. In 2007, 123 companies listed, raising $1.42 billion.

Nationally, 75 companies listed after raising a total of $1.3 billion, down from last year's 260 IPOs at $10.3 billion.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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